What are the warnings signs for UK equities in Q2?

The UK economy has provided a relatively supportive backdrop for the consumer over the past year, who have benefitted from jobs growth, cheaper oil, and a near-zero inflationary environment.

In short, consumers had extra funds in their pocket and consumer discretionary industries, such as leisure, performed well. Barclaycard trend data in February showed spending grew by a robust 3.3% year-on-year. While this is a slight deceleration from January, it is still in line with the four-year average growth rate. Monthly spending remains robust for the cinema, pub and restaurant industries, and home improvement continues to benefit from an uptick in DIY sales.  Airline travel is another growth market, with summer capacity looking set for expansion, despite geopolitical issues...